Record retail shop closures forecast for 2025

2nd January 2025

The retail sector is braced for a challenging year, with a record 17,349 shop closures forecast for 2025, according to the Centre for Retail Research.

If the forecast is correct then this would surpass the previous record of 17,145 in 2022. Last year, 13,479 shops closed and 169,395 retail jobs were los marking a 28% increase from 2023.

The data found that retailers are particularly concerned about the impending rise in business rates, which will more than double the average shop’s bill to £8,613

The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker. Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.

Professor Joshua Bamfield, Director of the Centre for Retail Research, said: “The comparatively low figures for 2023 now look like an anomaly, a pause for breath by many retailers after lockdowns if you like.

“The problems of changed customer shopping habits, inflation, rising energy costs, rents and business rates have continued and forced many retailers to cut back even more strongly in 2024.”

Forecast for the Year 2025

TOTAL STORES CLOSED   17,349
TOTAL JOB LOSSES 201,953
Outcomes for 2024
Retailing 2024 (end-December) Administ-ration CVAs Rational-isation Totals
specific redundancies & rationalisation   7,727 NA   17,757   25,484
multiples: stores closed     918     1,220     2,138
multiples: jobs lost   11,231    65,553   74,784
self-employed/concessions in larger shops   4,311      6,200    10,511
independent store closures   6.619      4,722     11,341
independent job losses 32,645    25,971    58.616
Total Job losses 55,914   113,481  169,395
Total store closures   7,537     5,942     13,479